Bankrupt fashion retailer Stefanel to close all of its stores in Romania

Fashion discounter OVS, which took over bankrupt fashion retailer Stefanel, decided to close all Stefanel stores in Romania, Profit.ro reported.

In 2019, according to the latest available data, the 13 Stefanel stores in Romania generated a turnover of RON 23.9 million (EUR 5.1 mln) and losses of almost RON 11 mln (EUR 2.4 mln), with about 60 employees.

The Italian group Stefanel, positioned on the premium segment, has accumulated debts of about EUR 170 mln in the last ten years, amid fierce competition from more accessible retailers, such as H&M or Zara.

Under these conditions, Stefanel, a family business launched in 1959, went into insolvency and judicial administration in September 2019, being put up for sale last summer.

Last month, OVS bought the brand for EUR 3.2 mln. OVS is controlled by the Italian investment fund Tamburi Investment Partners, which also owns the Upim department store and the home appliance retailer Croff.

Immediately after signing the transaction, Stefano Beraldo, CEO of OVS, announced that the company would retain only part of Stefanel's units and employees. At this moment, the decision is to include, in full, the stores in Romania on the "blacklist."

The Italian fashion group Stefanel was the first foreign retailer to come to Romania in 1991 and thus a pioneer for foreign retailers in the local fashion industry.

(Photo: Birgit Reitz Hofmann | Dreamstime.com)